This week, Congressional Democrats released a detailed tax hike plan that they promised to implement if given majority control of the House and Senate after the 2018 midterm elections. So much for the crocodile tears about the deficit--Democrats want to raise taxesnot to reduce the debt, but rather to spend that tax hike money on boondoggle projects.My own representative, Steny Hoyer is a proud "tax and spend" democrat.
As you might expect, hold onto your wallets. Here are the details:
Increase the top marginal income tax rate from 37 percent to 39.6 percent. . . . Increasing personal income taxes would be particularly unfortunate since workers are now seeing the results of lower rates in their paychecks. Thanks to the new IRS withholding tables, in February of this year over 90 percent of workers saw higher take home pay in the form of fatter direct deposits (for a humorous spectacle of the New York Times desperately trying to get people to down-talk their bigger paychecks, click here).
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Increase the corporate income tax rate from 21 percent to 25 percent. Up until this year, the United States labored under the highest corporate income tax rate in the developed world. . . .As a result of this change, companies like Fiat Chrysler, Amgen, and Amicus Therapeutics (among many others) have announced new factories and jobs would be built in America, not in other countries.
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Not content to endanger all that good news, the Democrat tax increase goes on to call for the following:
Bring back the alternative minimum tax (AMT) for 4 million families. Up until this year, 4 million upper middle class families had to calculate their income taxes two different ways, and then pay the higher result. This was due to a provision of the law known as the "alternative minimum tax" or AMT. Millions more had to at least pay a tax preparer to run the calculation, even if they didn't end up paying the AMT. The new tax law all but repealed the AMT for 99 percent of these families thanks to a higher AMT "standard deduction."
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Cut the "death tax" standard deduction in half.Over the past few decades, no tax has proven more unpopular in every single poll than the death tax, the federal tax on estates. 60 to 70 percent of poll respondents consistently call for its full repeal. The new tax law didn't repeal the death tax, but it did the next best thing--it doubled the death tax's "standard deduction" from $5.5 million to $11 million (and twice that for surviving spouses). As a result, far fewer family businesses and farms will be subject to the death tax, and many smaller firms can shed the costly insurance, legal, and actuarial costs of avoiding the death tax. . .
Linked at Pirate's Cove in the weekly "Sorta Blogless Sunday Pinup" and links.